Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Target Corporation (“Target” or the “Company”) (NYSE: TGT) common stock between August 18, 2021 and May 17, 2022, inclusive (the “Class Period”). Target investors have until May 30, 2023 to file a lead plaintiff motion.
Investors suffering losses on their Target investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On May 18, 2022, Target released its first quarter 2021 financial results, disclosing that the Company’s revenue had declined by nearly 19%, while its gross margin had fallen by 4.3%. The Company explained that its practice of ordering inventory before it was needed, while previously considered “durable” and “flexible,” had now resulted in overstocked, unsellable inventory, taking up space and leaving Target unable to quickly pivot to meet changing consumer preferences and with an inventory increase of nearly $1.1 billion over the previous quarter. Furthermore, the Company stated that it expected the excess inventory to negatively affect earnings into the next quarter.
On this news, Target’s stock price fell $53.67, or 24.9%, to close at $161.61 per share on May 18, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the true extent of Target's difficulty maintaining a balanced inventory of in-demand goods, despite its insights into changing consumer preferences; (2) that Target was severely impacted by changing consumer preferences; (3) that Target's inventory mix was significantly more sensitive to changing consumer preferences due to Target's practice of buying larger quantities ahead of season, and was therefore at significant risk of having to use markdowns to sell out-of-demand goods; and (4) that, as a direct result of these changing preferences, Target's inventory increasingly became out-of-balance and overweight in bulky and unsellable goods throughout the Class Period forcing Target to markdown its out-of-demand goods, thereby negatively impacting revenue; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Target common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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Law Offices of Howard G. Smith
Howard G. Smith, Esquire